Japanese Fundamentals Drive Adoption of New Industrial Structure Vision

New York, New York - October 5, 2010 - The Japan External Trade Organization (JETRO) Focus Newsletter series provides readers with a snapshot of Japan's macroeconomy, as well as other important topics and trends. It is designed to analyze current developments, including those relating to Japan's economy, its business, financial, investment and political environment, as well as relevant social and cultural themes.

View the October 2010 Newsletter

A summary is presented below:

Japanese Fundamentals Drive Adoption of New Industrial Structure Vision
Since the collapse of Japan's bubble economy in 1990, the country has delivered sluggish economic performance despite holding a significant technological advantage...

Industrial Structure Vision Takes into Account Severity of Current Situation
Former Minister of Economy, Trade and Industry Masayuki Naoshima highlighted the need to devise a comprehensive plan in a recent address which urged Japan to...

Problem Areas of Japan's Industrial Structure
Postwar Japan has relied heavily on its automobile industry for both domestic and export consumption. As a result, almost 50% of Japan's GDP growth from 2000-2007 can be attributed to...

Flaws in Japan's Corporate Business Model Discourages Globalization
Given their diminished ability to compete overseas, Japanese firms try to compensate by focusing on their domestic market. This means they miss opportunities in...

The Galapagos Effect - How Japan Wins in Technology, but not in Business
Observers of Japan have widely acknowledged the nation is an island where highly advanced technology has often evolved to meet very specific domestic applications. Embracing the "uniqueness" of Japanese society, many of the...

Enhancing Competitiveness through New Drivers of Growth & Employment
As suggested in a Harvard Business School research study, Japan will have to initiate significant institutional change to harness its technological advantages to become more globally competitive. The report notes...

Realizing Growth and Employment Targets
Over the past decade, real growth in Japan registered at a sluggish 1%. Improvements proposed within the Vision are expected to double this growth over the next ten years. The Vision also....

Enhancing Japan as an International Financial Market and Business Center
Through this combined effort of initiating structural reform with more prudent public finance Japan hopes to generate more investment and business activity and to realize revenue gains, higher employment and...

Creating Constituencies that Benefit From Change and Reform
Japan's old model was highly successful and allowed it to develop into an industrial powerhouse and the world's second largest economy. Naturally, this created interests that...

Political Climate Indicates Challenges & Benefits of Progressive Thinking
Recent developments concerning Japan's political climate are worth noting given their potential effect on implementation of the Vision and...

Japan's Transition has Important Consequences for the Foreign Investor
While it would be nice if this transition were seamless, "give and take" adjustment is an unavoidable and essential part of the political and economic process. This is particularly true within...

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http://www.jetro.org/content/851

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Data, statistics and the reference materials presented within this newsletter have been compiled by JETRO from publicly- released media and research accounts. Although these statements are believed to be reliable, JETRO does not guarantee their accuracy, and any such information should be checked independently by the reader before they are used to make any business or investment decision.

For additional information on economic and financial trends in Japan, please contact us at http://www.jetro.org/contact or:

Kenichi Kawamoto Executive Director JETRO New York Office email: kenichi_kawamoto@jetro.go.jp tel. +1-212-997-0416

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